Question

requirement 1. record each transaction in the journal. key each transaction by date. explanations are not required. (record debits first, then credits. exclude explanations from journal entries.) august 2: cloutier services received $69,000 cash and issued common stock to the stockholders. transaction data august 2 cloutier services received $69,000 cash and issued common stock to the stockholders. august 3 purchased supplies, $500, and equipment, $11,800, on account. august 4 performed services for a customer and received cash, $5,600. august 7 paid cash to acquire land, $33,000. august 11 performed services to a customer and billed the customer, $3,300. cloutier expects to collect within one month. august 16 paid for the equipment purchased august 3 on account. august 17 paid for newspaper advertising, $560. august 18 received partial payment from customer on account, $1,200. august 22 received and paid the water and electricity bills, $390. august 29 received $3,300 cash for servicing the heating unit of a customer. august 31 paid employee salaries, $2,500. august 31 declared and paid dividends of $2,000.

Explanation:

Step1: Record Aug 2 transaction

Debit: Cash $69000$; Credit: Common Stock $69000$

Step2: Record Aug 3 transaction

Debit: Supplies $500$, Equipment $11800$; Credit: Accounts Payable $12300$

Step3: Record Aug 4 transaction

Debit: Cash $5600$; Credit: Service Revenue $5600$

Step4: Record Aug 7 transaction

Debit: Land $33000$; Credit: Cash $33000$

Step5: Record Aug 11 transaction

Debit: Accounts Receivable $3300$; Credit: Service Revenue $3300$

Step6: Record Aug 16 transaction

Debit: Accounts Payable $11800$; Credit: Cash $11800$

Step7: Record Aug 17 transaction

Debit: Advertising Expense $560$; Credit: Cash $560$

Step8: Record Aug 18 transaction

Debit: Cash $1200$; Credit: Accounts Receivable $1200$

Step9: Record Aug 22 transaction

Debit: Utilities Expense $390$; Credit: Cash $390$

Step10: Record Aug 29 transaction

Debit: Cash $3300$; Credit: Service Revenue $3300$

Step11: Record Aug 31 transaction - Salaries

Debit: Salaries Expense $2500$; Credit: Cash $2500$

Step12: Record Aug 31 transaction - Dividends

Debit: Dividends $2000$; Credit: Cash $2000$

Answer:

Date	Accounts	Debit	Credit
	Common Stock		$69000$
August 3	Supplies	$500$
	Equipment	$11800$
	Accounts Payable		$12300$
August 4	Cash	$5600$
	Service Revenue		$5600$
August 7	Land	$33000$
	Cash		$33000$
August 11	Accounts Receivable	$3300$
	Service Revenue		$3300$
August 16	Accounts Payable	$11800$
	Cash		$11800$
August 17	Advertising Expense	$560$
	Cash		$560$
August 18	Cash	$1200$
	Accounts Receivable		$1200$
August 22	Utilities Expense	$390$
	Cash		$390$
August 29	Cash	$3300$
	Service Revenue		$3300$
August 31	Salaries Expense	$2500$
	Cash		$2500$
August 31	Dividends	$2000$
	Cash		$2000$